A new partnership between BNP Paribas and Capgemini
The 12th edition of the World Payments Report (WPR)was released on 27th September 2016 at the SIBOS event at Geneva. The WPR 2016 is a collaboration between BNP Paribas and Capgemini and is especially significant as BNP Paribas has joined hands with Capgemini for the first time to produce the report. Up until now, the WPR has been the industry’s leading source for intelligence related to the global non-cash payments market. With BNP Paribas’ collaboration, the 12th report, in addition to bringing insightful analysis of the global non-cash transaction environment to banks, will also focus on providing in-depth research on payment-related topics particularly relevant for the corporate sector.
The 2016 report indicates that there has been an unprecedented growth observed in digital payment transactions. This is largely being driven by strong economic growth in key developing countries. As the cost of cash continues to rise, improved security measures such as EMV and biometrics, and government initiatives designed to encourage electronic payments in developing markets have also fuelled this growth. However, this growth comes as banks face increasing demand for seamless, secure digital transaction services, particularly from corporate customers, spurring transaction banks to accelerate investment and collaboration amongst banks and/or with FinTechs (financial technology firms) to reduce time to market in delivering differentiating digital transaction experiences.
According to the WPR, growth in digital payments occurred across all regions, with developing markets experiencing the highest rates — 16.7 percent — and mature markets growing at 6.0 percent, although mature markets still account for 70.9% of total global volumes. For the first time, China surpassed the U.K. and South Korea in digital transaction volumes, taking fourth position among the top ten markets globally, behind the U.S., Eurozone and Brazil. This continued growth in digital payments globally presents opportunities for banks to provide such services to customers while corporates also benefit from a more efficient financial supply chain. Cards remain the fastest growing digital payments instrument since 2010, while check usage continues to decline. Immediate payments have the potential to drive growth in digital transactions as an alternative to cash and checks, but efforts are needed to educate stakeholders, provide more value-added services, and upgrade infrastructure at merchants and corporates.
The core theme for WPR 2016 is the challenges and opportunities that exist in transaction banking. “While treasurers’ fundamental expectations have not changed over recent years - control, visibility on cash, risk management - corporates increasingly expect banks to digitalize support processes such as account management, data analytics, compliance tracking, and fraud detection and prevention”, said Jean-Francois Denis, Deputy Global Head of Cash Management, BNP Paribas. “This calls for banks to accelerate their shift towards digitization and foster a more collaborative approach.”
Download the World Payment Report 2016 from www.worldpaymentsreport.com